The government recently announced that structures up to 70 sqm in people's backyards no longer needed a building consent
Following the new law which will simplify the rules surrounding building granny flats, ratepayers may see additional costs, according to a report by Stuff.co.nz.
Granny flats are housing units which are built within the same block as the dwelling of a single-family. While it is thought to be one of the possible ways to mitigate the housing crisis, many experts insist it’s not a long-term solution.
Last week, the government announced that a building consent is no longer required for people who are building structures of up to 70sqm in their backyards. Infometrics economist Brad Olsen (pictured above) told Stuff that the change is likely to cause rate hikes on sections with new granny flats.
He explained that apart from more people using a home’s resources with the construction of a granny flat, there may be possible problems that will arise with the change in the property’s value as well as how the councils all throughout New Zealand would handle it.
“If you build a granny flat on a property which did not previously have one before, presumably there will be an increase in local rates for that property,” said Olsen.
He added that if this was not the case, the usage of local resources will increase despite it being effectively unfunded.
“Existing households would be subsidizing properties with new granny flats,” said Olsen.
Meanwhile, Masterton and Carterton direct councils’ spokesperson said that rates were not based on size, but rather if the property can be occupied. The spokesperson said that while new structures like granny flats were deemed occupiable, it will attract additional fixed charges for water, sewerage, and recycling, as well as a roading charge.
“This applies [regardless] of the dwelling’s size. Adding granny flats may also affect a property’s overall valuation, which in turn could impact its valuation-based rates,” said the spokesperson.
During the announcement for the legislative change, Housing Minister Chris Bishop said that it was difficult to build homes that people in New Zealand needed due to the need for complicated and expensive consent processes.
“These simple dwellings have the potential to be part of the solution for providing families with more housing options. This will be great for grandparents, people with disabilities, young adults, and workers in the rural sector,” said Bishop.
Bishop said that while there wasn’t a sole solution for the housing crisis, increasing the number of multigenerational family units is a step towards solving it.
“I think it’ll be relatively popular,” said Bishop.
